This archive report was first published on 12 June 2020.
Kenya's Finance Bill 2020 has removed liquefied petroleum gas (LPG) from tax-exempt goods, introducing a 14% value-added tax (VAT) on cooking gas.
As a result, households will pay at least Sh300 more for cooking gas from July 1, with the 13-kilogramme retailing between Sh2,400 and Sh2,500.
According to Treasury Cabinet Secretary Ukur Yatani, the Finance Bill is expected to become law by the end of June, with new taxes taking effect when the new financial year starts.
"Contents of Finance Bill are expected to be law by July. This means new taxes will take effect when the new financial year starts," said Mr Yatani.
Kenyan households have enjoyed low cooking gas prices since June 2016, after the Treasury scrapped the tax on LPG to cut costs and boost uptake among the poor.
However, the 14% VAT cuts short the anticipated fall in cooking gas costs following the fall in global prices of crude oil due to the coronavirus pandemic.
